1. Office employment trends (12-month change)
Columbus
Total jobs vs. Unemployment rate
Columbus
Office employment update
Metro Columbus . March 2015
Cost containment remains key for most tenants in the Columbus market. Many
businesses continue to operate with a lean workforce. Real estate is generally
the second largest expenditure for companies after personnel costs, so
tenants are continuing to keep a close eye on their office space and look for
opportunities to consolidate or condense their operations as they manage
expenses. Columbus-based Huntington Bank’s recent announcement that it
would eliminate nearly 200 positions amid efforts to control rising personnel
costs is a common example of such cost containment strategies.
The government sector has long played an important role in the capitol city
and along with professional and business services, has historically accounted
for the largest portion of office-occupied space, reaching its highest peak in
2013 at just over 163,000 employees in December. The majority of
government entities are located in the CBD, and occupy more than four million
square feet of space, most of which is owner-occupied.
Office real estate implications
Job growth/loss by sector (12-month change)
Columbus
-3,100
-200
0
400
600
900
1,000
1,200
2,500
5,000
-4000 -2000 0 2000 4000 6000
Financial Activities
Information
Manufacturing
Professional & Business Services
Government
Other Services
Mining and Logging
Leisure & Hospitality
Trade, Transportation & Utilities
Educational & Health Services
Number of Jobs
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
780,000
800,000
820,000
840,000
860,000
880,000
900,000
920,000
940,000
960,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Peak: 951,110 jobs
2.6%
Total Employment Unemployment
Sources: Jones Lang LaSalle Research, Bureau of Labor Statistics
3.7%Columbus unemployment
0.8%Columbus12-month job growth
5.5%U.S. unemployment
2.4%U.S. 12-month job growth
• The Columbus metro added 8,300 payrolls, annually, according to the
latest figures from the BLS. Total non-farm employment now sits at
roughly one million jobs. Meanwhile, unemployment remains virtually
unchanged from the previous month at 3.7 percent.
• The office employment sector, though, continued its struggle towards
positive jobs growth, dropping 2,300 from payrolls, annually. Professional
and business services enjoyed some employment gains, adding 400
jobs, year-over-year. Financial activities continued its now year-long
streak of negative jobs growth, dropping 3,100 from payrolls, annually.
• Total U.S. nonfarm employment increased by 295,000 jobs in February,
topping consensus forecasts of 235,000 jobs. The private sector has
added 12.0 million jobs over 60 straight months of job growth, extending
the longest streak on record.
• Meanwhile, U.S. unemployment decreased 20 basis points to 5.5
percent, its lowest rate in seven years. One area of continued
apprehension among economists is wage growth, which remained
unchained at 2.0 percent year-over-year in the latest BLS report. In a
healthy economy, annualized wage gains are typically between 3.5 and
4.0 percent.
(15.0)
(10.0)
(5.0)
0.0
5.0
10.0
15.0
20.0
2010
2011
2012
2013
2014
Financial Activities Professional and Business Services Information Government

2. © 2015 Jones Lang LaSalle IP, Inc. All rights reserved.
All information contained herein is from sources deemed
reliable; however, no representation or warranty is made
to the accuracy thereof.
JLL Americas Research • Columbus Office Employment Update 2
December 2012 December 2013 December 2014
Total Non-farm
Employment
979,400
3.1%
992,600
1.3%
1,000,900
0.8%
Unemployment Rate 5.7% 5.9% 3.7%
Columbus Supersectors December 2012 December 2013 December 2014
Mining, Logging and Construction 29,400 1.7% 32,100 9.2% 33,100 3.1%
Manufacturing 67,300 2.7% 67,300 0.0% 67,300 0.0%
Trade, Transportation, & Utilities 192,300 1.4% 195,400 1.6% 197,900 1.3%
Information 17,700 4.7% 18,300 3.4% 18,100 -1.1%
Financial Activities 74,400 3.9% 75,500 1.5% 72,400 -4.1%
Professional & Business Services 165,300 5.3% 164,200 -0.7% 164,600 0.2%
Educational & Health Services 137,900 2.4% 138,800 0.7% 143,800 3.6%
Leisure & Hospitality 93,400 5.7% 97,500 4.4% 98,700 1.2%
Other Services 37,700 6.8% 37,600 -0.3% 38,500 2.4%
Government 164,000 1.4% 165,900 1.2% 166,500 0.4%
News on the street
Columbus businesses expanding, contracting, etc.
Employment statistics
Columbus
Industry employment stratification
Columbus
Berardi & Partners Ι Architectural Services: Relocating
The Berardi & Partners design firm plans to leave its home on the edge of German Village for one of three office buildings the Edwards Cos. development firm built
in Grandview Heights nearly nine years ago. Records show Goodale IV LLC, real estate affiliate of the design firm, purchased the 15,738-square-foot office property
at 1398 Goodale Blvd. for $2.1 million. The firm will move into about 11,000 square feet that's occupied by the Conrad Phillips Vutec.
Coyote Logistics Ι Freight Forwarding Services: Expanding
Chicago-based logistics provider, Coyote Logistics, plans to relocate its administrative operations from Hilliard and expand its regional offices at the mixed-use
complex at 250 S. High Street. under construction downtown. Daimler Group and Kaufman Development expect to finish the project this year. Coyote looks to add
50 new jobs while moving 34 existing jobs with its relocation. According to the firm, Coyote was attracted to Columbus strategist logistics hub among other factors.
Nationwide Mutual Insurance Co. Ι Property/Casualty Insurance Carriers: Consolidating
Nationwide Mutual Insurance Co. will close call centers in Canton and Lynchburg, Virginia, and move the 740 affected jobs to Columbus and two other markets, the
company announced as part of its ongoing restructuring. Nationwide has not decided how the jobs will be dispersed among offices in Columbus, Des Moines, Iowa,
and San Antonio, Texas. Any jobs that are shifted to Central Ohio will be put at the company's planned office complex at Grandview Yard.
Thelab Ι Advertising Agencies: Expanding
A New York creative production agency is making Columbus its Midwest home. Thelab, which counts Victoria's Secret among its clients, has taken 5,500 square
feet at 855 Grandview Avenue and expects to hire between 10 and 15 employees in the next 18 months. Thelab was founded in 2002 as a creative retouching
agency and has grown into a full-service production group. It has 90 employees between its New York and Los Angeles offices.
Tim Hortons Ι Specialty Eateries: Contracting
Tim Hortons is cutting jobs at its corporate headquarters in Canada as well as its U.S. headquarters in Dublin in the wake of its merger with Burger King. The
statement didn't specify the number of cuts and company representatives declined to comment. The Oakville, Ontario-based coffee-and-doughnuts chain had about
120 workers in Dublin last year. According to officials, the cuts will allow the chain to be faster, more efficient and better positioned for continued success.
Wondersauce LLC Ι Advertising Agencies: Expanding
New York-based digital creative agency Wondersauce LLC now has an office in Columbus and has landed fast-growing apparel merchant Homage LLC as its first
client. The digital agency has 50 employees in New York and has hired six in Columbus with hopes of being at 12 workers by year-end. Its office will open in March
and is located in the space above the Martini Modern Italian restaurant near the Short North.
Cody Brooks
Research Analyst
tel +1 614 460 4444
Cody.Brooks@am.jll.com
65 E State Street,
Suite 550
Columbus, OH 43215
www.jll.com/columbus
Robert Kramp
Senior Vice President – Americas
Midwest & Great Lakes Research Director
tel +1 312 228 2470
Robert.Kramp@am.jll.com
200 East Randolph Street,
47th Floor
Chicago, IL 60601
www.us.joneslanglasalle.com/research
Trade, transportation
and Utilities,
197,900, 20%
Government,
166,500, 17%
Professional and
Business Services,
164,600, 16%
Educational and Health
Services,
143,800, 14%
Leisure and Hospitality,
98,700, 10%
Financial Activities,
72,400, 7%
Manufacturing,
67,300, 7%
Other Services,
38,500, 4%
Mining, Logging and
construction,
33,100, 3%
Information,
18,100, 2%